Correlation Between Chocoladefabriken and Bet At

Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Bet At at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chocoladefabriken and Bet At into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and bet at home AG, you can compare the effects of market volatilities on Chocoladefabriken and Bet At and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Chocoladefabriken with a short position of Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Bet At.

Diversification Opportunities for Chocoladefabriken and Bet At

0.85

Correlation Coefficient

Chocoladefabriken  Bet At

Very poor diversification

The 3 months correlation between Chocoladefabriken and Bet is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home and Chocoladefabriken is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Chocoladefabriken Lindt Spruengli are associated (or correlated) with Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Bet At go up and down completely randomly.

Pair Corralation between Chocoladefabriken and Bet At

Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to generate 0.42 times more return on investment than Bet At. However, Chocoladefabriken Lindt Spruengli is 2.39 times less risky than Bet At. It trades about 0.23 of its potential returns per unit of risk. bet at home AG is currently generating about -0.09 per unit of risk. If you would invest  9,800,000  in Chocoladefabriken Lindt Spruengli on October 8, 2024 and sell it today you would earn a total of  240,000  from holding Chocoladefabriken Lindt Spruengli or generate 2.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Chocoladefabriken Lindt Spruen  vs.  bet at home AG

Chocoladefabriken Lindt

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chocoladefabriken Lindt Spruengli has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Chocoladefabriken is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

bet at home

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days bet at home AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Chocoladefabriken and Bet At

The main advantage of trading using opposite Chocoladefabriken and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Bet At can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bet At will offset losses from the drop in Bet At's long position.

The idea behind Chocoladefabriken Lindt Spruengli and bet at home AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.